* Kuwait committed to implement lower output deal -oil
minister
* Global economic outlook darkens amid trade war -Ifo
* IEA says oil demand hurt by trade war, slowing economy
(Updates prices, adds comment)
By Collin Eaton
HOUSTON, Aug 12 (Reuters) - Oil prices were little changed
on Monday as expectations that major producers would continue to
reduce global supplies ran into worries about sluggish growth in
crude demand due to the U.S.-China trade war.
International benchmark Brent crude LCOc1 settled at
$58.57 a barrel, up 4 cents. West Texas Intermediate (WTI)
CLc1 futures settled at $54.93, up 43 cents.
Investors were torn between forecasts of slowing global oil
demand growth and chatter about renewed efforts by major
producers to curtail output and support prices, analysts said.
The Organization of the Petroleum Exporting Countries and
its allies, known as OPEC+, have agreed to cut 1.2 million
barrels per day (bpd) since Jan. 1.
Kuwait was "fully committed" to the OPEC+ agreement, Oil
Minister Khaled al-Fadhel said, adding that Kuwait has cut its
own output by more than required by the accord. He said fears of a global economic downturn were
"exaggerated," and said global demand for crude should pick up
in the second half, helping reduce the surplus in oil
inventories gradually.
Analysts said in a sign that de-facto OPEC leader Saudi
Arabia intends to support prices, state-run Saudi Aramco is
ready to launch what could be the world's largest initial public
offering. The Saudi government will decide when the IPO will take
place based on its perception of "what would be the optimum
market condition," senior Aramco executive Khalid al-Dabbagh
said in an analyst call. The official said Saudi Aramco has signed a letter of intent
with India's Reliance RELI.NS to potentially buy a stake in
its refining and petrochemicals business. "The Saudis will need a higher price for oil for its IPO,
and this confirms they'll do whatever it takes to get oil prices
up," said Phil Flynn, an analyst at Price Futures Group in
Chicago.
Analysts said more reductions were needed to support prices
as forecasters and government agencies issue gloomy predictions
for the global economy and oil demand growth.
The economic outlook has deteriorated worldwide as the trade
dispute between the United States and China escalates, Germany's
Ifo economic institute said in its quarterly survey of nearly
1,200 experts in more than 110 countries. "It's going to take the market far longer to come back into
balance, which has forced OPEC and non-OPEC producers to
continue with their production cuts," said Andy Lipow, president
at Lipow Oil Associates in Houston.
The International Energy Agency (IEA) said on Friday that
mounting signs of an economic slowdown had caused global oil
demand to grow at its slowest pace since the financial crisis of
2008. Tensions between the United States and Iran were also seen
contributing to firming oil prices, analysts said.
Iranian Foreign Minister Javad Zarif said the launch of a
U.S. maritime security mission in the Persian Gulf has turned
the region into "a matchbox ready to ignite because America and
its allies are flooding it with weapons." Much of the world's oil passes through Strait of Hormuz near
the Persian Gulf. The U.S. security mission began after
explosions damaged six tankers in May and June, and Iran seized
a British-flagged tanker the following month.
Iranian officials "are saying it's a narrow passage area and
the U.S. is going to stir up geopolitical problems," said Bill
Baruch, an oil trader at Blue Line Futures in Chicago. "That
helped oil."
A weakening dollar .DXY also propped up oil prices as
investors feared the trade war would slow U.S. economic growth,
analysts said. A softer greenback makes dollar-denominated crude
cheaper for foreign buyers. On Friday, the U.S. Commodity Futures Trading Commission
said hedge funds raised their net long positions in U.S. crude
futures and options in the week to Aug. 6. It was a signal some
investors are "trying to pick the bottom," said Robert Yawger,
an analyst at Mizuho in New York.
"They took the opportunity to get in," Yawger said. "The
spec(ulator) community appears to want to trade these lows."
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INDIA ENERGY IMPORTS https://tmsnrt.rs/2YEZb6V
Global oil demand growth https://tmsnrt.rs/2YFYbzG
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